Google to be subpoenaed in antitrust probe into whether it has abused its web dominance

By Daily Mail Reporter
Updated: 16:36 EST, 23 June 2011

Google is about to receive a subpoena from the U.S. Federal Trade Commission as part of a probe into the web giant's Internet search business.

The company, which dominates the U.S. and global markets for search advertising, has been accused by competitors of favouring its own services over rivals in its search results.

The FTC plans to send a civil investigative demand, the civil equivalent of a subpoena, with a request for more information within five days, reported the Wall Street Journal.

Testify: Google CEO Larry Page and chairman Eric Schmidt could be subpoenaed by a probe into whether the company has abused its web dominance
Testify: Google CEO Larry Page and chairman Eric Schmidt could be subpoenaed by a probe into whether the company has abused its web dominance

Testify: Google CEO Larry Page and chairman Eric Schmidt could be subpoenaed by a probe into whether the company has abused its web dominance

Google CEO Larry Page and chairman Eric Schmidt are being threatened with subpoenas to appear before a Senate Committee in the next couple of months, according to reports.

U.S. antitrust regulators have been concerned about Google's dominance of the web search industry, and the Internet giant has been under investigation by the European Commission since last November.

Complaints have been filed with regulators on both sides of the Atlantic, many from Google rivals who specialise in vertical searches, such as price comparison websites, which are widely seen as a threat to Google's position as a key gateway to online information.

Probe: Analysts warn that the investigation could make Google less competitive

Probe: Analysts warn that the investigation could make Google less competitive

An antitrust probe could impact the aggressive expansion of the business as typically antitrust investigations make target companies less competitive.

Some analysts point to the example of Microsoft after its high profile battle with the Department of Justice over the dominance of Internet Explorer in 1998.

Following the settlement it has not taken advantage of some technological curves, such as mobile.

Google has had previous antitrust setbacks. The company walked away from a search deal with Yahoo in 2008 when the Justice Department signalled it was prepared to challenge it.

And a New York judge said last month that a deal Google had made with publishers and authors to create a massive digital library was illegal, partially because it effectively gave Google the rights to books which are in copyright but whose authors cannot be found.

Google and the FTC declined to comment on the reports.

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